94 sub

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I noticed an add today for a 1994 diesel suburban that needs engine work for $800. Besides the engine what other things should I look for as issues. What do 6.5's cost to replace now a days? Waiting for the guy to call back.

 

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The guy got back with me, he says there is water in the oil. Head gasket likely? It's in pretty good shape with very little rust. the tranny works fine but it has 220,000 miles. it is also a 4x4.